# Rewards

Any liquidity provider can expect to gain two types of rewards: LP fees (consisting of the respective pair's assets) and $LIX farming rewards. \
\
As mentioned in the previous section, LPs gain LP fees paid by the Uniswap V3 users who perform trades with the vault's liquidity. By concentrating liquidity in a tight range, these LP fees can be many multiples higher than they would be with that same amount of capital in a (0, ∞) range (e.g. Uniswap V2). The only trade-off is that for a given price change, the IL is greater for a concentrated liquidity position than it is for liquidity in a (0, ∞) range (assuming both started off concentrated around the same price). LP fees are auto-compounded and the LV tokens reflect this in the underlying assets similar to how interest bearing tokens accrue value.

Besides LP fees every LPer receives $LIX farming rewards in exchange for staking their [LV tokens](/lixir-doc/lixir-vaults/lv-tokens.md) in the corresponding gauge. The farming mechanics are in large part similar to that of Curve, but contain some minor adjustments to fit our tokenomics and protocol's properties. For more information on farming rewards, see [Farming](/lixir-doc/farming.md).

![](/files/-MlX2BeA_GyLOJOvv7EW)


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